PBF Energy closes deal for Chalmette refinery, logistics assets

PBF Holding Co. LLC, a subsidiary of PBF Energy Inc., Parsippany, NJ, has completed its deal with ExxonMobil Corp. and Petroleos de Venezuela SA (PDVSA) to become 100% owner of Chalmette Refining LLC, the former ExxonMobil-PDVSA joint venture that operates a 189,000-b/d refinery in Chalmette, La., outside of New Orleans (OGJ Online, June 18, 2015).

Valued at $322 million plus working capital, the deal, which includes the refinery as well as related logistics assets, was finalized as of Nov. 2, PBF Energy said.

During its remaining fourth-quarter 2015 ownership of the refinery, the independent refiner said it plans to operate the refinery at a total throughput of 170,000-190,000 b/d using primarily medium to heavy-sour crudes.

In addition to the dual-train coking refinery, which can process both light and heavy crudes, PBF Energy also acquired the following Chalmette Refining assets:

• 100% ownership of the MOEM pipeline, which provides access to the Empire terminal, as well as to the CAM Connection pipeline, which provides access to the Louisiana Offshore Oil Port (LOOP) through a third-party pipeline.

• 80% ownership interest in both Collins Pipeline Co. and T&M Terminal Co., in Collins, Miss., which together provide the Chalmette refinery access for its clean-product production to reach the Plantation and Colonial pipelines.

• A marine terminal equipped to handle imports of waterborne feedstock as well as loading or unloading of finished products.

• A clean-products truck rack for access to local markets.

• A shell capacity of about 7.5 million bbl in crude oil and product storage.

Alongside its pending acquisition of ExxonMobil Corp.’s 155,000-b/d refinery in Torrance, Calif. (OGJ Online, Oct. 1, 2015), PBF Energy’s acquisition of the Chalmette refinery will boost its total throughput capacity to about 900,000 b/d to make it North America’s fourth largest independent refiner, the company said.

PBF Energy currently operates three US refineries, including a 190,000-b/d refinery in Delaware City, Del., a 180,000-b/d refinery in Paulsboro, NJ, and a 170,000-b/d refinery in Toledo, Ohio.

The company is due to complete its purchase of the Torrance refinery during second-quarter 2016.